Pledged Asset Line

A flexible line of credit for your financial needs.

Looking to enhance your borrowing power for real estate, business, or other expenses? A Pledged Asset Line from Schwab Bank is a flexible, non-purpose line of credit¹ that lets you leverage
the value of your portfolio.

Secured by assets held in a separate Pledged Account maintained by Charles Schwab & Co., Inc., you can use your line of credit to access the funds you need while helping maintain your investing strategy.

This flexible line of credit can be used for a wide range of financial needs:*

New home purchase

Home renovation

New business startup

Tax payments

College tuition

Dream vacation

*Proceeds may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account.

Why would you like to open a PAL?‡
(Check all that apply.)

Entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk. At any time, including in the event that the loan value of collateral is insufficient to satisfy the minimum loan value of collateral or to support
the outstanding loans, Schwab Bank may demand immediate payment of all or any portion of the outstanding obligations, or require additional cash or securities to be added to the Pledged Account maintained
at Charles Schwab & Co., Inc. If a Demand is not addressed, the pledged securities may be immediately liquidated without further notice to you, which may result in tax consequences.

We respect your privacy. By submitting the information above, you consent to Schwab using the information you provide to communicate with you and to provide information about products and services.
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online privacy at Schwab.

Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Pledged Account, are offered by Charles Schwab & Co., Inc., Member
SIPC, and are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the
possible loss of principal invested. Deposit and lending products, including the Pledged Asset Line, are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. Charles Schwab Bank
is not acting or registered as a securities broker-dealer or investment advisor.

Contact us today for further information or see the frequently asked questions below.

Schwab Bank's Pledged Asset Line is an uncommitted revolving non-purpose flexible line of credit¹ secured by assets held in a separate Pledged Account maintained by Charles Schwab &
Co., Inc. ("Schwab").

All loan requests are accepted or rejected in Schwab Bank's sole discretion.

Proceeds must be used for a lawful personal, commercial, or business purpose under state, federal, or other applicable law and may not be used to purchase securities, pay down margin loans, or be deposited
into any brokerage account.

Interest rates are based on the market-driven one-month LIBOR (London interbank offered rate) plus an interest rate spread. The interest rate spread is determined based on the loan value of your collateral
at the time the line of credit is opened.

Changes in the interest rate may cause your monthly payments to change and may increase your cost of borrowing. Schwab Bank reserves the right to change any part of the interest rate after the PAL is
established, including the LIBOR reference rate, interest rate spread, or post-Demand spread.

Schwab Bank requires that the assets pledged as collateral be held in a separate Pledged Account maintained at Schwab, and that, at all times, the loan value of collateral of the assets held in the Pledged
Account(s) equal or exceed the greater of (i) the minimum loan value of collateral (currently $100,000) and (ii) the outstanding loans.

Schwab Bank, in its sole discretion, will determine what collateral is eligible collateral and the loan value of collateral.

The first draw made against a Pledged Asset Line must meet or exceed the minimum initial draw amount (currently $70,000). After the minimum initial draw has been satisfied, subsequent draw requests can
be made in lesser amounts subject to available credit.

The Pledged Account is a special account set up at Schwab, a broker-dealer. This account holds your assets that have been pledged as collateral for the line of credit. There are no account opening or
maintenance fees (brokerage commissions and other fees may apply). The Pledged Account does not have margin, payment, or option trading features.

Schwab Bank does not provide investment advice with respect to the Pledged Account, any securities pledged to the Pledged Account, or any transactions therein. Unless otherwise specified or agreed, Schwab
also does not make recommendations about the Pledged Account, assets pledged to the Pledged Account, or any transactions in the Pledged Account.

Entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk. At any time, including in the event that the loan value of collateral is insufficient to satisfy
the minimum loan value of collateral or to support the outstanding loans, Schwab Bank may demand immediate payment of all or any portion of the outstanding obligations, or require additional cash
or securities to be added to the Pledged Account maintained at Charles Schwab & Co., Inc.

If a Demand is not addressed, the pledged securities may be immediately liquidated without further notice to you, which may result in tax consequences.

See if your securities may be eligible to be used as collateral for your line of credit.

1. A non-purpose line of credit may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account. Proceeds must be used for a lawful personal, commercial, or business
purpose under state, federal, or other applicable law.

This offer is made available at the discretion of Charles Schwab Bank ("Schwab Bank") and is valid from July 1, 2019, to September 30, 2019 (the "Promotion Period"). If during the Promotion Period you submit
an application for a new Schwab Bank Pledged Asset Line account ("PAL Account"), you will receive a discount of 0.50% on the interest rate spread ("Interest Rate Spread") applicable to your PAL Account
based on Schwab Bank's standard rates described above, which are subject to change without prior notice. The initial variable Annual Percentage Rate on the PAL Account is the sum of one-month LIBOR plus
the Interest Rate Spread (based on the loan value of collateral at origination).

The Schwab Bank PAL Account is governed by the terms of the Schwab Bank Pledged Asset Line Agreement. The discount will apply to the PAL Account and is subject to Schwab Bank's right to change
the interest rate at any time. The following are not eligible for this offer: any PAL with a stated term, or the amendment or refinancing of any existing PAL.

Notwithstanding this offer, Schwab Bank reserves its right to impose a post-demand spread after making demand on the PAL Account. Nothing herein is or should be interpreted as imposing an obligation
to lend. Pledged Asset Lines are subject to credit and collateral approval.

This offer is available to legal U.S. residents only. Schwab Bank may modify or end this offer at any time without notice. This offer cannot be combined with any other offers or rate discounts.
Other restrictions may apply.

The initial variable Annual Percentage Rate on the Pledged Asset Line, based on the loan value of the collateral pledged at origination, is the sum of one-month LIBOR plus the applicable Interest
Rate Spread shown above. Pledged Asset Line amounts begin at $100,000 with a required initial minimum advance of $70,000.

To learn more, talk to your Financial Consultant today or call Schwab Bank at 888-725-3630 to speak with a Regional Banking Manager.

Schwab Bank requires that the assets pledged as collateral for the Pledged Asset Line be held in a separate Pledged Account maintained at Charles Schwab & Co., Inc. (Schwab). Schwab Bank, in its sole discretion, will determine at any time the eligible collateral criteria and the loan value of collateral.

This offer is subject to change or withdrawal at any time and without notice. Nothing herein is or should be interpreted as imposing an obligation to lend. Pledged Asset Lines are subject to credit and collateral approval. Other conditions and restrictions may apply.

Entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk. At any time, including in the event that the loan value of collateral is insufficient to satisfy the minimum loan value of collateral or to support the outstanding loans, Schwab Bank may demand immediate payment of all or any portion of the outstanding obligations, or require additional cash or securities to be added to the Pledged Account maintained at Charles Schwab & Co., Inc. If a Demand is not addressed, the pledged securities may be immediately liquidated without further notice to you, which may result in tax consequences.

Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Pledged Account, are offered by Charles Schwab & Co., Inc., Member SIPC, and are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. Deposit and lending products, including the Pledged Asset Line, are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. Charles Schwab Bank is not acting or registered as a securities broker-dealer or investment advisor.